Public Storage (PSA) 10-Q 10 May 10 2010 Q1 Quarterly report Financial data

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Thousands	Mar. 31, 2010	Dec. 31, 2009
ASSETS
Cash and cash equivalents	$719,982	$763,789
Marketable securities	95,191	0
Real estate facilities, at cost:
Land	2,717,117	2,717,368
Buildings	7,578,733	7,575,587
Real estate facilities, gross	10,295,850	10,292,955
Accumulated depreciation	(2,816,692)	(2,734,449)
Real estate facilities, net	7,479,158	7,558,506
Construction in process	8,381	3,527
Total real estate facilities	7,487,539	7,562,033
Investment in real estate entities	601,104	612,316
Goodwill, net	174,634	174,634
Intangible assets, net	37,364	38,270
Loan receivable from Shurgard Europe	527,243	561,703
Other assets	101,414	92,900
Total assets	9,744,471	9,805,645
LIABILITIES AND EQUITY
Notes payable	516,132	518,889
Equity Shares, Series A called for redemption (Note 7)	205,366	0
Accrued and other liabilities	201,416	212,253
Total liabilities	922,914	731,142
Redeemable noncontrolling interests in subsidiaries (Note 6)	13,106	13,122
Commitments and contingencies (Note 11)
Equity:
Cumulative Preferred Shares of beneficial interest, $0.01 par value, 100,000,000 shares authorized, 886,140 shares issued (in series) and outstanding, (886,140 at December 31, 2009) at liquidation preference	3,399,777	3,399,777
Common Shares of beneficial interest, $0.10 par value, 650,000,000 shares authorized, 168,657,595 shares issued and outstanding (168,405,539 at December 31, 2009)	16,867	16,842
Equity Shares of beneficial interest, Series A, $0.01 par value, 100,000,000 shares authorized, none outstanding (8,377.193 shares issued and outstanding at December 31, 2009) (Note 7)	0	0
Paid-in capital	5,487,156	5,680,549
Accumulated deficit	(202,998)	(153,759)
Accumulated other comprehensive loss	(24,779)	(15,002)
Total Public Storage shareholders' equity	8,676,023	8,928,407
Equity of permanent noncontrolling interests in subsidiaries (Note 6)	132,428	132,974
Total equity	8,808,451	9,061,381
Total liabilities and equity	$9,744,471	$9,805,645

Consolidated Balance Sheets [Pa

Consolidated Balance Sheets [Parentheticals] (USD $)
In Hundreds, except Share data, unless otherwise specified	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Cumulative Preferred Shares of beneficial interest
Preferred Shares of beneficial interest	0.01	0.01
Shares authorized	100,000,000	100,000,000
Shares issued	886,140	886,140
Shares outstanding	886,140	886,140
Common Shares of beneficial interest
Par value	0.1	0.1
Shares authorized	650,000,000	650,000,000
Shares issued	168,657,595	168,405,539
Shares outstanding	168,657,595	168,405,539
Equity Shares of beneficial interest
Par value	0.01	0.01
Shares authorized	100,000,000	100,000,000
Shares issued	0	8377.19
Shares outstanding	0	8377.19

Consolidated Statements of Inco

Consolidated Statements of Income (USD $)
In Thousands, unless otherwise specified	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Revenues:
Self-storage facilities	$364,682	$370,772
Ancillary operations	25,158	25,835
Interest and other income	8,216	7,633
Total revenue	398,056	404,240
Expenses:
Self-storage facilities	132,684	133,265
Ancillary operations	8,430	9,653
Depreciation and amortization	84,828	84,492
General and administrative	10,077	9,679
Interest expense	7,339	8,128
Total expenses	243,358	245,217
Income from continuing operations before equity in earnings of real estate entities, gains on disposition of real estate investments, gain on early retirement of debt, asset impairment charges and foreign currency exchange loss	154,698	159,023
Equity in earnings of real estate entities	9,961	22,811
Gains on disposition of real estate investments	333	2,722
Gain on early retirement of debt	0	4,114
Asset impairment charges	(1,008)	0
Foreign currency exchange loss	(34,843)	(34,733)
Income from continuing operations	129,141	153,937
Discontinued operations	776	(508)
Net income	129,917	153,429
Net income allocated (to) from noncontrolling interests in subsidiaries:
Based upon income of the subsidiaries	(5,956)	(8,427)
Based upon repurchases of preferred partnership units	0	72,000
Net income allocable to Public Storage shareholders	123,961	217,002
Allocation of net income to (from) Public Storage shareholders:
Preferred shareholders based on distributions paid	58,108	58,108
Preferred shareholders based on repurchases	0	(6,218)
Equity Shares, Series A	5,131	5,131
Equity Shares, Series A based on redemptions	25,746	0
Restricted share units	238	486
Common shareholders	34,738	159,495
Net income allocable to Public Storage shareholders	$123,961	$217,002
Net income per common share - basic
Continuing operations	0.21	0.95
Discontinued operations	$0	$0
Net income per common share - basic, total	0.21	0.95
Net income per common share - diluted
Continuing operations	0.21	0.95
Discontinued operations	$0	$0
Net income per common share - diluted, total	0.21	0.95
Basic weighted average common shares outstanding	168,477	168,312
Diluted weighted average common shares outstanding	169,310	168,473
Equity Shares, Series A (basic and diluted)
Net income per share	0.61	0.61
Weighted average depositary shares	8,377	8,377

Consolidated Statements of Equi

Consolidated Statements of Equity (USD $)
In Thousands	Cumulative Preferred Shares Preferred Stock [Member]	Common Shares (CommonStockMember) Common Shares (CommonStockMember)	Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income	Total Public Storage Shareholders' Equity	Equity of Permanent Noncontrolling Interests in Subsidiaries	Total
Balance at Dec. 31, 2009	$3,399,777	$16,842	$5,680,549	($153,759)	($15,002)	$8,928,407	$132,974	$9,061,381
Equity Shares, Series A called for redemption (8,377.193 shares) (Note 7)	0	0	(205,366)	0	0	(205,366)	0	(205,366)
Issuance of common shares in connection with share-based compensation (Note 9)	0	25	11,797	0	0	11,822	0	11,822
Share-based compensation expense, net of cash compensation in lieu of common shares (Note 9)	0	0	176	0	0	176	0	176
Adjustments of redeemable noncontrolling interests in subsidiaries to liquidation value (Note 6)	0	0	0	(65)	0	(65)	0	(65)
Net income	0	0	0	129,917	0	129,917	0	129,917
Net income allocated to (Note 6):
Redeemable noncontrolling interests in subsidiaries	0	0	0	(223)	0	(223)	0	(223)
Permanent noncontrolling equity interests	0	0	0	(5,733)	0	(5,733)	5,733	0
Distributions to equity holders:
Cumulative preferred shares (Note 7)	0	0	0	(58,108)	0	(58,108)	0	(58,108)
Permanent noncontrolling interests in subsidiaries	0	0	0	0	0	0	(6,279)	(6,279)
Equity Shares, Series A (depositary share)	0	0	0	(5,131)	0	(5,131)	0	(5,131)
Holders of unvested restricted share units	0	0	0	(357)	0	(357)	0	(357)
Common Shares	0	0	0	(109,539)	0	(109,539)	0	(109,539)
Other comprehensive loss: (Note 2)	0	0	0	0	(9,777)	(9,777)	0	(9,777)
Balance at Mar. 31, 2010	$3,399,777	$16,867	$5,487,156	($202,998)	($24,779)	$8,676,023	$132,428	$8,808,451

1_Consolidated Statements of Eq

Consolidated Statements of Equity [Parentheticals]
	3 Months Ended Mar. 31, 2010
Issuance of common shares in connection with share-based compensation, shares	252,056
Equity Shares, Series A, depositary shares	0.613
Common Shares	0.65

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flows from operating activities:
Net income	$129,917	$153,429
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on disposition of real estate investments, including amounts in discontinued operations	(770)	(2,722)
Gain on early retirement of debt	0	(4,114)
Asset impairment charges	1,008	0
Depreciation and amortization, including amounts in discontinued operations	84,886	85,200
Distributions received from real estate entities in excess of (less than) equity in earnings of real estate entities	2,745	(10,992)
Foreign currency exchange loss	34,843	34,733
Other	(19,507)	4,331
Total adjustments	103,205	106,436
Net cash provided by operating activities	233,122	259,865
Cash flows from investing activities:
Capital improvements to real estate facilities	(4,812)	(8,499)
Construction in process	(4,854)	(2,328)
Proceeds from sales of real estate and other real estate investments	932	10,261
Purchase of marketable securities	95,248	0
Other investing activities	(2,221)	(825)
Net cash used in investing activities	(106,203)	(1,391)
Net cash flows from financing activities:
Principal payments on notes payable	(1,965)	(1,890)
Redemption of senior unsecured notes payable	0	(109,622)
Net proceeds from the issuance of common shares	11,822	555
Repurchases of cumulative preferred shares	0	(17,535)
Repurchases of permanent noncontrolling equity interests	0	(153,000)
Distributions paid to Public Storage shareholders	(173,135)	(156,162)
Distributions paid to redeemable noncontrolling interests	(304)	(340)
Distributions paid to permanent noncontrolling equity interests	(6,279)	(8,075)
Net cash used in financing activities	(169,861)	(446,069)
Net increase in cash and cash equivalents	(42,942)	(187,595)
Net effect of foreign exchange translation on cash	(865)	294
Cash and cash equivalents at the beginning of the period	763,789	680,701
Cash and cash equivalents at the end of the period	719,982	493,400
Foreign currency translation adjustment [Member]
Supplemental schedule of non cash investing and financing activities:
Real estate facilities, net of accumulated depreciation	828	0
Investment in real estate entities	8,467	10,366
Loan receivable from Shurgard Europe	34,460	34,864
Accumulated other comprehensive loss	(44,620)	(44,936)
Adjustment of redeemable noncontrolling interest to fair value [Member]
Supplemental schedule of non cash investing and financing activities:
Accumulated deficit	(65)	(99)
Redeemable noncontrolling interests	65	99
Equity Shares, Series A called for redemption [Member]
Supplemental schedule of non cash investing and financing activities:
Paid-in capital	(205,366)	0
Equity shares, Series A called for redemption	$205,366	$0

Description of the Business

Description of the Business
	3 Months Ended Mar. 31, 2010
Nature of Operations [Text Block]	1. Description of the Business Public Storage (referred to herein as the Company, the Trust, we, us, or our), a Maryland real estate investment trust, was organized in 1980.Our principal business activities include the acquisition, development, ownership and operation of self-storage facilities which offer storage spaces for lease, generally on a month-to-month basis, for personal and business use.Our self-storage facilities are located primarily in the United States (U.S.).We also have interests in self-storage facilities located in seven Western European countries. At March 31, 2010, we had direct and indirect equity interests in 2,009 self-storage facilities located in 38 states operating under the Public Storage name and own one facility in London, England.We also have a 49% interest in Shurgard Europe, which owns 115 facilities directly and has a 20% interest in 72 self-storage facilities located in Europe which operate under the Shurgard Storage Centers name.We own one facility located in London, England also operated under the Shurgard Storage Centers name.We also have direct and indirect equity interests in approximately 22 million net rentable square feet of commercial space located in 11 states in the U.S. primarily operated by PS Business Parks, Inc. (PSB) under the PS Business Parks name. Any reference to the number of properties, square footage, number of tenant reinsurance policies outstanding and the aggregate coverage of such reinsurance policies are unaudited and outside the scope of our independent registered public accounting firms review and audit of our financial statements in accordance with the standards of the Public Company Accounting Oversight Board.

Summary of Significant Accounti

Summary of Significant Accounting Policies
	3 Months Ended Mar. 31, 2010
Significant Accounting Policies [Text Block]	2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) as defined in the Financial Accounting Standards Board Accounting Standards Codification (the Codification), including the related guidance with respect to interim financial information, and in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X.Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements.In the opinion of management, all adjustments (consisting of normal and recurring adjustments) considered necessary for a fair presentation have been reflected in these unaudited condensed consolidated financial statements.Operating results for the three months ended March 31, 2010 are not necessarily indicative of the results that may be expected for the year ending December 31, 2010 due to seasonality and other factors.The accompanying unaudited condensed consolidated financial statements should be read together with the consolidated financial statements and related notes included in the Companys Annual Report on Form 10-K for the year ended December 31, 2009. Certain amounts previously reported in our December 31, 2009 and March 31, 2009 financial statements have been reclassified to conform to the March 31, 2010 presentation, as a result of discontinued operations. Consolidation Policy Codification Section 810-10-15-14 stipulates that generally any entity with a) insufficient equity to finance its activities without additional subordinated financial support provided by any parties, or b) equity holders that, as a group, lack the characteristics specified in the Codification which evidence a controlling financial interest, is considered a Variable Interest Entity (VIE).We have determined that we have no interests in VIEs. When we are the general partner, we are presumed to control the partnership unless the limited partners possess either a) the substantive ability to dissolve the partnership or otherwise remove us as general partner without cause (commonly referred to as kick-out rights), or b) the right to participate in substantive operating and financial decisions of the limited partnership that are expected to be made in the course of the partnerships business. The accounts of the entities we control are included in our consolidated financial statements, and all intercompany balances and transactions are eliminated.We account for our investment in entities that we do not consolidate using the equity method of accounting or, if we do not have the ability to exercise significant influence over an investee, the cost method of accounting.Changes in consolidation status are reflected effective the date the change of control or determination of primary beneficiary status occurred, and previously reported periods are not restated.The entities that we consolidate, for the periods in which the reference applies, are referred to hereinafter as the Subsidiaries.The entities that we have an interest in but

Real Estate Facilities

Real Estate Facilities
	3 Months Ended Mar. 31, 2010
Real Estate Disclosure [Text Block]	3. Real Estate Facilities Activity in real estate facilities is as follows: Three Months Ended March 31, 2010 (Amounts in thousands) Operating facilities, at cost: Beginning balance $ 10,292,955 Capital improvements 4,812 Disposition of real estate facilities (311 ) Impairment of real estate facilities (397 ) Impact of foreign exchange rate changes (1,209 ) Ending balance 10,295,850 Accumulated depreciation: Beginning balance (2,734,449 ) Depreciation expense (82,773 ) Disposition of real estate facilities 149 Impact of foreign exchange rate changes 381 Ending balance (2,816,692 ) Construction in process: Beginning balance 3,527 Current development 4,854 Ending balance 8,381 Total real estate facilities at March 31, 2010 $ 7,487,539 During the three months ended March 31, 2010, we recorded an impairment charge totaling $397,000 related to a land-leased facility where the lease is expiring and we do not expect the lease to be renewed.This impairment charge is included in asset impairment charges on our condensed consolidated statement of income for the three months ended March 31, 2010.During the three months ended March 31, 2010, we disposed of a portion of certain real estate facilities in connection with condemnation proceedings, with net proceeds totaling $495,000, and recorded a gain of $333,000 included in gain on disposition of real estate facilities.We also received additional proceeds, from a previously condemned facility, recording a gain included in discontinued operations totaling $437,000.

Investments in Real Estate Enti

Investments in Real Estate Entities
	3 Months Ended Mar. 31, 2010
Equity Method Investments [Text Block]	4. Investments in Real Estate Entities The following table sets forth our investments in the real estate entities at March 31, 2010 and December 31, 2009, and our equity in earnings of real estate entities for the three months ended March31, 2010 and 2009 (amounts in thousands): Investments in Real Estate Entities at Equity in Earnings of Real Estate Entities for the Three Months Ended March 31, March 31, 2010 December 31, 2009 2010 2009 PSB $ 326,652 $ 326,145 $ 6,274 $ 20,466 Shurgard Europe 260,806 272,345 3,310 1,901 Other Investments 13,646 13,826 377 444 Total $ 601,104 $ 612,316 $ 9,961 $ 22,811 Included in equity in earnings of real estate entities for the three months ended March31, 2009 is $16,284,000, representing our share of the earnings allocated from PSBs preferred shareholders as a result of PSBs repurchases of preferred stock and preferred units for amounts that were less than the related book value, during the period. During the three months ended March 31, 2010 and 2009, we received cash distributions from our investments in real estate entities totaling $12,706,000 and $11,819,000, respectively. During three months ended March 31, 2010 and 2009, our investment in Shurgard Europe decreased by $8,467,000 and $10,366,000, respectively, due to foreign currency translation adjustments. Investment in PSB PSB is a REIT traded on the New York Stock Exchange, which controls an operating partnership (collectively, the REIT and the operating partnership are referred to as PSB).We have a 41% common equity interest in PSB as of March 31, 2010 and December 31, 2009, comprised of our ownership of 5,801,606 shares of PSBs common stock and 7,305,355 limited partnership units in the operating partnership.The limited partnership units are convertible at our option, subject to certain conditions, on a one-for-one basis into PSB common stock.Based upon the closing price at March31, 2010 ($53.40 per share of PSB common stock), the shares and units had a market value of approximately $699.9million as compared to a book value of $326.7million.We account for our investment in PSB using the equity method. The following table sets forth selected financial information of PSB; the amounts represent 100% of PSBs balances and not our pro-rata share. 2010 2009 (Amounts in thousands) For the three months ended March 31, Total revenue $ 67,305 $ 69,309 Costs of operations (22,966 ) (22,436 ) Depreciation and amortization (18,190 ) (22,614 ) General and administrative (2,749 ) (1,976 ) Other items 4,441 (584 ) Net income $ 27,841 $ 21,699 At March 31, 2010 At December 31, 2009 (Amounts in thousands) Total assets (primarily real estate) $ 1,567,758 $ 1,564,822 Debt 52,544 52,887 Other liabilities 45,643 46,298 Preferred stock and units 699,464

Notes Payable and Line of Credi

Notes Payable and Line of Credit
	3 Months Ended Mar. 31, 2010
Debt Disclosure [Text Block]	5. Line of Credit and Notes Payable At March 31, 2010, we have a revolving credit agreement (the Credit Agreement) which expires on March 27, 2012, with an aggregate limit with respect to borrowings and letters of credit of $300 million.Amounts drawn on the Credit Agreement bear an annual interest rate ranging from the London Interbank Offered Rate (LIBOR) plus 0.35% to LIBOR plus 1.00% depending on our credit ratings (LIBOR plus 0.35% at March 31, 2010).In addition, we are required to pay a quarterly facility fee ranging from 0.10% per annum to 0.25% per annum depending on our credit ratings (0.10% per annum at March31, 2010).We had no outstanding borrowings on our Credit Agreement at March 31, 2010 or at May 7, 2010.At March 31, 2010, we had undrawn standby letters of credit, which reduce our borrowing capability with respect to our line of credit by the amount of the letters of credit, totaling $18,270,000 ($18,270,000 at December 31, 2009). The carrying amounts of our notes payable at March 31, 2010 and December 31, 2009 consist of the following (dollar amounts in thousands): March 31, 2010 December 31, 2009 (Amounts in thousands) Unsecured Notes Payable: 5.875% effective and stated note rate, interest only and payable semi-annually, matures in March 2013 $ 186,460 $ 186,460 5.7% effective rate, 7.75% stated note rate, interest only and payable semi-annually, matures in February 2011 (carrying amount includes $1,502 of unamortized premium at March 31, 2010 and $1,889 at December 31, 2009) 104,818 105,206 Secured Notes Payable: 5.5% average effective rate fixed rate mortgage notes payable, secured by 89 real estate facilities with a net book value of approximately $556 million at March 31, 2010 and stated note rates between 4.95% and 8.00%, maturing at varying dates between April 2010 and September 2028 (carrying amount includes $3,578 of unamortized premium at March31, 2010 and $3,983 at December 31, 2009) 224,854 227,223 Total notes payable $ 516,132 $ 518,889 Substantially all of our debt was acquired in connection with a property or other acquisition, and in such cases an initial premium or discount is established for any difference between the stated note balance and estimated fair value of the note.This initial premium or discount is amortized over the remaining term of the notes using the effective interest method.Estimated fair values are based upon discounting the future cash flows under each respective note at an interest rate that approximates those of loans with similar credit characteristics and term to maturity.These inputs for fair value represent significant unobservable inputs, which are Level3 inputs as the term is defined in the Codification. On February 12, 2009, we acquired $110,223,000 face amount of our existing unsecured notes pursuant to a tender offer for an aggregate of $109,622,000 in cash, and recognized a gain of $4,114,000 for the three months ended March 31, 2009. Our notes payable and our Credit Agreement ea

Noncontrolling Interests in Sub

Noncontrolling Interests in Subsidiaries
	3 Months Ended Mar. 31, 2010
Noncontrolling Interest Disclosure [Text Block]	6. Noncontrolling Interests in Subsidiaries In consolidation, we classify ownership interests in the net assets of each of the Subsidiaries, other than our own, as noncontrolling interests in subsidiaries.Interests that have the ability to require us, except in an entity liquidation, to redeem the underlying securities for cash, assets, or other securities that would not also be classified as equity are presented on our balance sheet outside of equity.At the end of each reporting period, if the book value is less than the estimated amount to be paid upon a redemption occurring on the related balance sheet date, these interests are increased to adjust to their estimated liquidation value (which approximates fair value), with the offset against retained earnings.All other noncontrolling interests in subsidiaries are presented as a component of equity, permanent noncontrolling interests in subsidiaries. Redeemable Noncontrolling Interests in Subsidiaries At March 31, 2010, the Redeemable Noncontrolling Interests in Subsidiaries represent equity interests in three entities that own in aggregate 14 self-storage facilities.During the three months ended March31, 2010 and 2009, these interests were increased by $65,000 and $99,000, respectively, to adjust to their estimated liquidation value (which approximates fair value).We estimate the amount to be paid upon redemption of these interests by applying the related provisions of the governing documents to our estimate of the fair value of the underlying net assets (principally real estate assets). During the three months ended March31, 2010 and 2009, we allocated a total of $223,000 and $262,000, respectively, of income to these interests.During the three months ended March31, 2010 and 2009, we paid distributions to these interests totaling $304,000 and $340,000, respectively. Permanent Noncontrolling Interests in Subsidiaries At March 31, 2010, the Permanent Noncontrolling Interests in Subsidiaries represent (i) equity interests in 28 entities that own an aggregate of 94 self-storage facilities (the Other Permanent Noncontrolling Interests in Subsidiaries) and (ii) preferred partnership units (the Preferred Partnership Interests).These interests are presented as equity because the holders of the interests do not have the ability to require us to redeem them for cash, other assets, or other securities that would not also be classified as equity. Other Permanent Noncontrolling Interests in Subsidiaries The total carrying amount of the Other Permanent Noncontrolling Interests in Subsidiaries was $32,428,000 at March31, 2010 ($32,974,000 at December 31, 2009).During the three months ended March31, 2010 and 2009, we allocated a total of $3,921,000 and $4,148,000, respectively, in income to these interests and we paid distributions to these interests totaling $4,467,000 and $4,058,000, respectively. Preferred Partnership Interests At March 31, 2010 and December 31, 2009, our preferred partnership units outstanding were comprised of 4,000,000 units of our 7.250% Series J preferred units ($100,000,000 carrying amount, redeemable May 9, 2011).Subject to certain condit

Public Storage Shareholders' Eq

Public Storage Shareholders' Equity
	3 Months Ended Mar. 31, 2010
Stockholders' Equity Note Disclosure [Text Block]	7. Public Storage Shareholders Equity Cumulative Preferred Shares At March 31, 2010 and December 31, 2009, we had the following series of Cumulative Preferred Shares of beneficial interest outstanding: At March 31, 2010 At December 31, 2009 Series Earliest Redemption Date Dividend Rate Shares Outstanding Liquidation Preference Shares Outstanding Liquidation Preference (Dollar amounts in thousands) Series V 9/30/07 7.500 % 6,200 $ 155,000 6,200 $ 155,000 Series W 10/6/08 6.500 % 5,300 132,500 5,300 132,500 Series X 11/13/08 6.450 % 4,800 120,000 4,800 120,000 Series Y 1/2/09 6.850 % 750,900 18,772 750,900 18,772 Series Z 3/5/09 6.250 % 4,500 112,500 4,500 112,500 Series A 3/31/09 6.125 % 4,600 115,000 4,600 115,000 Series B 6/30/09 7.125 % 4,350 108,750 4,350 108,750 Series C 9/13/09 6.600 % 4,425 110,625 4,425 110,625 Series D 2/28/10 6.180 % 5,400 135,000 5,400 135,000 Series E 4/27/10 6.750 % 5,650 141,250 5,650 141,250 Series F 8/23/10 6.450 % 9,893 247,325 9,893 247,325 Series G 12/12/10 7.000 % 4,000 100,000 4,000 100,000 Series H 1/19/11 6.950 % 4,200 105,000 4,200 105,000 Series I 5/3/11 7.250 % 20,700 517,500 20,700 517,500 Series K 8/8/11 7.250 % 16,990 424,756 16,990 424,756 Series L 10/20/11 6.750 % 8,267 206,665 8,267 206,665 Series M 1/9/12 6.625 % 19,065 476,634 19,065 476,634 Series N 7/2/12 7.000 % 6,900 172,500 6,900 172,500 Total Cumulative Preferred Shares 886,140 $ 3,399,777 886,140 $ 3,399,777 The holders of our Cumulative Preferred Shares have general preference rights with respect to liquidation and quarterly distributions.Holders of the preferred shares, except under certain conditions and as noted below, will not be entitled to vote on most matters.In the event of a cumulative arrearage equal to six quarterly dividends, holders of all outstanding series of preferred shares (voting as a single class without regard to series) will have the right to elect two additional members to serve on our Board of Trustees until events of default have been cured.At March 31, 2010, there were no dividends in arrears. Except under certain conditions relating to the Companys qualification as a REIT, the Cumulative Preferred Shares are not redeemable prior the dates indicated on the table above.On or after the respective dates, each of the series of Cumulative Preferred Shares will be redeemable, at the option of the Company, in whole or in part, at $25.00 per share (or depositary share as the case may

Related Party Transactions

Related Party Transactions
	3 Months Ended Mar. 31, 2010
Related Party Transactions Disclosure [Text Block]	8. Related Party Transactions Mr. Hughes, Public Storages Chairman of the Board of Trustees, and his family (collectively the Hughes Family) have ownership interests in, and operate approximately 52 self-storage facilities in Canada using the Public Storage brand name (PS Canada) pursuant to a royalty-free trademark license agreement with Public Storage.We currently do not own any interests in these facilities nor do we own any facilities in Canada.The Hughes Family owns approximately 17.3% of our common shares outstanding at March 31, 2010.We have a right of first refusal to acquire the stock or assets of the corporation that manages the 52 self-storage facilities in Canada, if the Hughes Family or the corporation agrees to sell them.However, we have no interest in the operations of this corporation, we have no right to acquire this stock or assets unless the Hughes Family decides to sell and we receive no benefit from the profits and increases in value of the Canadian self-storage facilities. We reinsure risks relating to loss of goods stored by tenants in the self-storage facilities in Canada.During the three months ended March 31, 2010 and 2009, we received $159,000 and $183,000 (based upon historical exchange rates between the U.S. Dollar and Canadian Dollar in effect as the revenues were earned), respectively, in reinsurance premiums attributable to the Canadian facilities.Since our right to provide tenant reinsurance to the Canadian facilities may be qualified, there is no assurance that these premiums will continue. Public Storage and Mr. Hughes are co-general partners in certain consolidated partnerships and affiliated partnerships of Public Storage that are not consolidated.The Hughes Family owns 47.9% of the voting stock and Public Storage holds 46% of the voting and 100% of the nonvoting stock (representing substantially all the economic interest) of a private REIT.The private REIT owns limited partnership interests in five affiliated partnerships.The Hughes Family also owns limited partnership interests in certain of these partnerships and holds securities in PSB.PS Canada holds approximately a 1.2% interest in Stor-RE, a consolidated entity that provides liability and casualty insurance for PS Canada, Public Storage and certain affiliates of Public Storage, for occurrences prior to April 1, 2004 as described below.Public Storage and the Hughes Family receive distributions from these entities in accordance with the terms of the partnership agreements or other organizational documents.

Share-Based Compensation

Share-Based Compensation
	3 Months Ended Mar. 31, 2010
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	9.Share-Based Compensation Stock Options We have various stock option plans (collectively referred to as the PS Plans).Under the PS Plans, the Company has granted non-qualified options to certain trustees, officers and key employees to purchase the Companys common shares at a price equal to the fair market value of the common shares at the date of grant.Options granted after December 31, 2002 vest generally over a five-year period and expire between eight years and ten years after the date they became exercisable.The PS Plans also provide for the grant of restricted shares (see below) to officers, key employees and service providers on terms determined by an authorized committee of our Board. We recognize compensation expense for stock options based upon their estimated fair value on the date of grant amortized over the applicable vesting period (the Fair Value Method), net of estimates for future forfeitures.We estimate the fair value of our stock options based upon the Black-Scholes option valuation model. For each of the three months ended March 31, 2010 and 2009, we recorded $600,000 in stock option compensation expense related to options granted after January 1, 2002. A total of 105,000 stock options were granted during the three months ended March 31, 2010, 202,177 shares were exercised, and no shares were forfeited.A total of 3,598,491 stock options were outstanding at March 31, 2010 (3,695,668 at December 31, 2009). Outstanding stock options are included on a one-for-one basis in our diluted weighted average shares, less a reduction for the treasury stock method applied to a) the average cumulative measured but unrecognized compensation expense during the period and b) the strike price proceeds expected from the employee upon exercise. Restricted Share Units Outstanding restricted share units vest ratably over either five or eight years (depending upon the terms of each individual grant) from the date of grant.The employee receives additional compensation equal to the per-share dividends received by common shareholders with respect to restricted share units outstanding.Such compensation is accounted for as dividends paid.Any dividends paid on units which are subsequently forfeited are expensed.Upon vesting, the employee receives common shares equal to the number of vested restricted share units in exchange for the units. The total value of each restricted share unit grant, based upon the market price of our common shares at the date of grant, is amortized over the service period, net of estimates for future forfeitures, as compensation expense.The related employer portion of payroll taxes is expensed as incurred. During the three months ended March 31, 2010, 94,864 restricted share units were granted, 24,735 restricted share units were forfeited and 80,477 restricted share units vested.This vesting resulted in the issuance of 49,879 common shares.In addition, cash compensation totaling $2,292,000 was paid to employees in lieu of 30,598 common shares based upon the market value of the shares at the date of vesting is used to settle the employees tax liability generated by the vesting and is charged agains

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Segment Reporting Disclosure [Text Block]	10.Segment Information Our reportable segments reflect significant operating activities that are evaluated separately by management, and are organized based upon their operating characteristics.Each of our segments is evaluated by management based upon net segment income.Net segment income represents net income in conformity with GAAP and our significant accounting policies as denoted in Note 2. We had previously grouped our Commercial Segment with other ancillary activities such as reinsurance of policies against losses to goods stored by tenants in our self-storage facilities, merchandise sales, truck rentals, and containerized storage.Due to the termination of our containerized storage and truck rental operations, these other ancillary activities as a group have become less significant and as a result no longer represent a reportable segment either individually or as a group.We have adjusted the classification of the Presentation of Segment Information below with respect to prior periods to be consistent with our current segment definition. Following is the description of and basis for presentation for each of our segments. Domestic Self-Storage Segment The Domestic Self-Storage Segment comprises our domestic self-storage rental operations, and is our predominant segment.It includes the operations of the 1,989 self storage facilities owned by the Company and the Subsidiaries, as well as our equity share of the 19 self-storage facilities that we account for on the equity method.None of our interest and other income, interest expense or the related debt, general and administrative expense, or gains and losses on the sale of self-storage facilities is allocated to our Domestic Self-Storage segment because management does not consider these items in evaluating the results of operations of the Domestic Self-Storage segment.At March 31, 2010, the assets of the Domestic Self-Storage segment are comprised principally of our self-storage facilities with a book value of $7.5 billion ($7.6 billion at December31, 2009), Tenant Intangibles with a book value of approximately $18.5 million ($19.4 million at December 31, 2009), and the Other Investments with a net book value of $13.6 million ($13.8 million at December 31, 2009).Substantially all of our other assets totaling $101.4million, and our accrued and other liabilities totaling $201.4 million, ($92.9 million and $212.3 million, respectively, at December 31, 2009) are directly associated with the Domestic Self-Storage segment. Europe Self-Storage Segment The Europe Self-Storage segment comprises our interest in Shurgard Europe, which has a separate management team that makes the financing, capital allocation, and other significant decisions for this operation.The Europe Self-Storage segment presentation includes our equity share of Shurgard Europes operations, the interest and other income received from Shurgard Europe, as well as specific general and administrative expense, disposition gains, and foreign currency exchange gains and losses that management considers in evaluating our investment in Shurgard Europe.At March 31, 2010, our condensed consolidated balance sheet includ

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Mar. 31, 2010
Commitments and Contingencies Disclosure [Text Block]	11.Commitments and Contingencies Legal Matters Brinkley v. Public Storage, Inc. (filed April 2005) (Superior Court of California Los Angeles County) The plaintiff sued the Company on behalf of a purported class of California non-exempt employees based on various California wage and hour laws.Plaintiff sought certification for alleged meal period violations, rest period violations, failure to pay for travel time, failure to pay for mileage reimbursement, and for wage statement violations.The Court certified subclasses based only on alleged meal period and wage statement violations.In June 2007, the Court granted the Companys summary judgment motion as to the causes of action relating to the subclasses certified and dismissed those claims.Plaintiff appealed.The Court of Appeals sustained the dismissal.The California Supreme Court granted review but deferred the matter pending disposition of a related issue in another case. Other Items We are a party to various claims, complaints, and other legal actions that have arisen in the normal course of business from time to time that are not described above.We believe that it is unlikely that the outcome of these other pending legal proceedings including employment and tenant claims, in the aggregate, will have a material adverse impact upon our operations or financial position. Insurance and Loss Exposure We have historically carried customary property, earthquake, general liability and workers compensation coverage through internationally recognized insurance carriers, subject to customary levels of deductibles.The aggregate limits on these policies of $75 million for property coverage and $102million for general liability are higher than estimates of maximum probable loss that could occur from individual catastrophic events determined in recent engineering and actuarial studies; however, in case of multiple catastrophic events, these limits could be exhausted. Our tenant insurance program reinsures a program that provides insurance to certificate holders against claims for property losses due to specific named perils (earthquakes and floods are not covered by these policies) to goods stored by tenants at our self-storage facilities for individual limits up to a maximum of $5,000.We have third-party insurance coverage for claims paid exceeding $1,000,000 resulting from any one individual event, to a limit of $25,000,000.At March 31, 2010, there were approximately 604,000 certificate holders held by our tenants participating in this program, representing aggregate coverage of approximately $1.3 billion.Because each certificate represents insurance of goods held by a tenant at our self-storage facilities, the geographic concentration of this $1.3 billion in coverage is dispersed throughout all of our U.S. facilities.We rely on a third-party insurance company to provide the insurance and are subject to licensing requirements and regulations in several states. Operating Lease Obligations We lease land, equipment and office space under various operating leases.At March 31, 2010, the approximate future minimum rental payments required under our operating leases for each calen

Subsequent Events

Subsequent Events
	3 Months Ended Mar. 31, 2010
Schedule of Subsequent Events [Text Block]	12.Subsequent Events We entered into an agreement to acquire 30 self-storage facilities for $189 million, consisting of the assumption of debt totaling $100 million and $89 million of cash. Twenty-eight of the facilities (1.8 million square feet) are located in the Los Angeles area and the surrounding communities of Southern California. The other two facilities (107,000 square feet) are located in the Chicago area.The closing will occur in stages through June 30, 2010.As of May 7, 2010, we closed on eight facilities with a total acquisition cost of $38million.These acquisitions are subject to customary closing conditions, and there can be no assurance that we will be able to complete the acquisition of the remaining facilities During April and May, 2010, we issued in aggregate 5,800,000 depositary shares each representing 1/1,000 of a 6.875% Cumulative Preferred Share of Beneficial Interest, Series O, for gross proceeds of $145,000,000. On April 15, 2010, we called for redemption our Series V Cumulative Preferred Shares, at par.The aggregate redemption amount, before payment of accrued dividends, to be paid on May 18, 2010, is $155,000,000.

Document Information

Document Information
	3 Months Ended Mar. 31, 2010
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2010-03-31
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1

Entity Information

Entity Information (USD $)
	3 Months Ended Mar. 31, 2010	May. 07, 2010
Entity Registrant Name	Public Storage
Entity Central Index Key	0001393311
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float	$8,811,049
Entity Common Stock, Shares Outstanding		169,833,053